AMD gains 5% in premarket amid positive future AI business forecasts 📈

Advanced Micro Devices (AMD.US) shares traded about 5% higher on Wednesday after CEO Dr. Lisa Su forecast that the AI data center market could reach $1 trillion by 2030, during the company’s analyst day presentation. Su described AI compute demand as “faster than anything we’ve seen before”, outlining plans to scale AMD’s data center revenue to tens of billions by 2027 through new GPUs and rack-scale Helios systems. The rise of AMD and related AI stocks improve also sentiments around Nasdaq; US100 gains almost 0.5%.

• AMD and ARM gained ground, while Intel lost market share in the global microprocessor market during Q3 2025, according to data from Mercury Research. Now, AMD aims to achieve $100 billion in annual data center revenue within five years, fueled by expanding its footprint in the AI computing market dominated by Nvidia.
• Despite Nvidia’s commanding lead, Morgan Stanley noted AMD’s success will hinge on being “better than Nvidia on the metrics that matter most to customers,” such as efficiency, power, and ROI. AMD plans to challenge Nvidia with its next-generation MI400 accelerators and Helios rack systems, expected in 2026.

AMD bets on future

• CFO Jean Hu forecasted that over the next 3–5 years, AMD expects:

  • 35% annual growth across the company,

  • 60% annual growth in data center revenue,

  • and EPS rising to $20 in the same timeframe (vs. $2.68 expected in 2025, per LSEG).

• AMD expects gross margins between 55% and 58%, higher than some Wall Street forecasts.

• AMD highlighted momentum across both GPUs and CPUs, noting:

  • Instinct AI chips are now deployed at 7 of the top 10 AI companies,

  • EPYC processors command roughly 40% of global server CPU revenue.

• Upcoming products like the MI450 GPU and Helios rack solutions are expected to accelerate cloud deployments and expand market share in 2026–2027.

• AMD also reported custom-design wins in aerospace, defense, and communications, set to scale in 2026 and beyond — supporting a multi-year AI growth trajectory.

• Total unit shipments rose 3.9% quarter-over-quarter, beating the seasonal average of 2.4%, thanks to stronger sales in both server and notebook CPU segments.

• Intel’s share declined by 157 basis points (–1.57%) to 64.2%, continuing its multi-quarter slide.

• AMD’s share increased by 108 basis points (+1.08%) to 22.1%, reflecting robust demand for its Ryzen and EPYC processors.

• ARM-based CPUs gained 49 basis points (+0.49%), reaching 13.7% of total units — their highest level to date.

• The data underscores intensifying competition in the CPU landscape, as AMD and ARM steadily erode Intel’s long-held dominance across PCs and data centers.

AMD’s Recent Earnings

• Q3 2025 results shattered expectations:

  • EPS: $1.20 (vs. est. $1.12)

  • Revenue: $9.25B (+36% YoY), a record high.

  • Data center sales: $4.3B (+22% YoY).

• Forecast for Q4 2025 revenue: $9.3–$9.9B, above consensus ($9.17B).

• CEO Lisa Su called it “a clear step up in our growth trajectory”, driven by expanding AI demand and compute leadership.

• Despite strong fundamentals, shares fell ~1% after hours due to broader AI bubble concerns, but remain up over 100% year-to-date.

Stock performance: AMD shares are up 97% year-to-date and have gained 16% since October 6, when the company signed a strategic AI partnership with OpenAI. Investors praised the bold growth outlook, though some warned of execution risks, supply chain pressures, and potential saturation in AI infrastructure spending, sending shares higher. Investors will be watching whether AMD can turn strong product momentum into sustained profitability amid rising competition in AI infrastructure from Nvidia, Intel, and custom chipmakers such as Broadcom.

Source: xStation5​​​​​​​